why is paypal stock down

PayPal stock is having its worst day in 20 months after a disappointing revenue forecast

• PayPal shares plunged 12% after the payments company gave a revenue forecast that came in well short of analysts’ estimates.
• It’s the biggest drop for the stock since the early days of the pandemic in March 2020.
• PayPal investors are focusing more on the company’s guidance than on an announced partnership between Venmo and Amazon.

Full Answer

Why is PayPal closing its money market fund?

Feb 02, 2022 · As of 10 a.m. ET, PayPal shares were down by 25% to a new 52-week low. So what As you might expect, PayPal's steep decline is earnings-related. PayPal released its fourth-quarter and full-year 2021...

Is it a good time to buy PayPal stock?

Feb 16, 2022 · PayPal (PYPL) stock price is down over 60% from its peak in July 2021. See why I believe that the risk of buying PYPL stock now is below the potential return.

Why you should buy PayPal?

Feb 02, 2022 · Here’s what’s behind PayPal stock being on pace for worst trading day ever Shares of PayPal closed down 24% on Wednesday, a day after the company provided weak guidance that it blamed in part on...

Why you should never, ever use PayPal?

Dec 07, 2021 · PayPal stock fell after the earnings release, and it's gone even further south since then. It's now down 21% year to date, and shares are trading at 44 times trailing-12-month earnings. That's not...

What happened

Shares of fintech giant PayPal Holdings ( PYPL ) were down 20% in November according to data provided by S&P Global Market Intelligence. The third-quarter earnings report showed decelerating growth rates, and general market volatility worked against the digital payments company.

So what

PayPal is the original peer-to-peer payments network, and between its PayPal payments, Venmo payments, and merchant business, it controls a large digital payments system that makes money from several streams.

NASDAQ: PYPL

To make matters worse, PayPal stock got a downgrade from investment bank Bernstein based on its belief that the company will face stronger competition in the payments space from e-commerce companies like Amazon and Shopify.

Now what

PayPal stock fell after the earnings release, and it's gone even further south since then. It's now down 21% year to date, and shares are trading at 44 times trailing-12-month earnings. That's not cheap, but it's a lot less than high-growth fintech companies like competitor Square, which trades at 189 times trailing-12-month earnings.

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Massive User Base Fuels PYPL Stock Growth

Nothing reflects the success of a business like a massive user base. PYPL stock is dominating the world of digital payments with an ever-expanding customer base. This is a sign that it is successfully meeting the needs of the users and has a business that is well-positioned to grow.

The Bottom Line On PYPL Stock

Several analysts have lowered the price target on PYPL stock but are bullish on its long-term prospects. BTIG analyst Mark Palmer has a price target of $270 for the stock with a “buy” rating. Mizuho analyst Dan Doley also has a “buy” rating but a more conservative price target of $200.